I was quite impressed with ICICIDirect until I saw variation in purchase value & actual value of NAV of a certain mutual fund's systematic investment plan (SIP) in my monthly statement. The actual (AMC’s published at the closure of business day) value was X and ICICIDirect had used a higher value Y. I went through SIP details to check out Entry Load but as usual there was no entry load for SIPs and 2.25% for normal purchases. Upon contacting customer care, lady on other end revealed that, ICICI uses “Sale Price” published at AMFI. To my surprise, Y was same as “Sale Price” on that particular day. Going through, AMFI I realized that “Sale Price” is includes actual (AMC’s published at the closure of business day) value plus appropriate Entry Load as decided by AMC. That means unknowingly (unless they have read this article or got information from ICICIDirect) everyone on ICICDirect is paying Entry Load for SIP of that particular mutual fund.
Now, I won’t say whether it’s right or wrong to charge Entry Load when you tell zero Entry Load while subscribing, but certainly its misguidance to investors. They should have made it clear, that they will use “Sale Price” published by AMFI for SIP purchases. But unfortunately no one at ICICIDirect seem to care about the confusion to its users and hence this article. I hope someone will benefit from this article.
Now, I won’t say whether it’s right or wrong to charge Entry Load when you tell zero Entry Load while subscribing, but certainly its misguidance to investors. They should have made it clear, that they will use “Sale Price” published by AMFI for SIP purchases. But unfortunately no one at ICICIDirect seem to care about the confusion to its users and hence this article. I hope someone will benefit from this article.
